Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the honourable member for Petrie for her question. The World Bank overnight lowered its economic growth forecast for China. This is of direct relevance to the Australian economy. China is now expected to grow at 6.5 per cent in 2009. This is down from nine per cent in 2008 and 13 per cent in 2007. This is partly driven by weaknesses in the global economy causing significant falls in private sector investment. It has also been caused by falling Chinese exports. We have seen China’s exports down 21 per cent year on year, on average, in the first two months of 2009. These are very large numbers with global significance. China’s economic growth has a direct effect on Australia. China is Australia’s largest trading partner. It takes 13.6 per cent of our exports, $31.4 billion in 2007-08.

These results on China’s exports follow a broader trend of falling world trade. Volumes of world trade in 2009 are predicted to contract for the first time since 1982. The fall in global trade highlights an important element of the upcoming G20 agenda, which is preventing emerging protectionism. The World Bank also released a report last night on protectionist measures that have been introduced since this crisis began.

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